[Click eStock] "TLB, Potential to Benefit Significantly from Memory Semiconductor Growth"

On the 12th, Kiwoom Securities stated that TL Bi, a company specializing in memory module substrates, is a "leading company that can greatly benefit from the growth of the memory semiconductor market." No investment opinion or target price was provided.

On the same day, Oh Hyunjin, a researcher at Kiwoom Securities, said, "Profitability can improve with partial post-processing through the operation of the Vietnam factory in the first half of the year, and there is also potential for additional growth through mass production of Compute Express Link (CXL) substrates in the second half." He forecasted TL Bi's performance this year to reach sales of 196.9 billion KRW and operating profit of 11.7 billion KRW, representing increases of 15% and 284% respectively compared to the previous year.

TL Bi's major customers include Samsung Electronics, SK Hynix, and Micron, and the company was affected by the sluggish semiconductor market last year. However, a rebound in the memory semiconductor market is expected recently, especially with increasing demand for enterprise solid-state drives (SSD).

Researcher Oh said, "Major global NAND flash companies will raise SSD prices in the second quarter. This is understood to be due to the surge in SSD demand for AI servers as big tech companies proceed with data center construction that was delayed last year." He added, "Considering TL Bi's solid position in the SSD module substrate market and the increasing proportion of high value-added server SSD substrates, we expect both top-line growth and profitability improvement."

CXL is a next-generation interface that efficiently connects central processing units (CPU), graphics processing units (GPU), and memory to increase data processing speed. Unlike competitors, TL Bi focuses on memory module substrates and is understood to have a development advantage in next-generation CXL substrates. Researcher Oh said, "Intel is expected to launch the first server CPU Xeon 6 supporting CXL 2.0 within the first half of the year. Mass production of DRAM supporting CXL 2.0 will also proceed in the second half." He added, "If TL Bi delivers high value-added CXL substrates within the year, a steep increase in profitability is possible."